6 tips to successfully manage your Scope 3 data

Managing Scope 3 emissions data has become an important but challenging task in the new landscape of corporate sustainability. The CSRD – along with current and upcoming disclosure regulations in the EU, UK and US – is creating a shift towards mandatory emissions reporting and external assurance of data. Scope 3 is now coming into focus for enterprises worldwide.

Companies struggle with Scope 3

Although Scope 3 emissions generally account for more than 70% of a company’s total emissions, they are difficult to understand, calculate and mitigate given their indirect character. Unlike Scope 1 and Scope 2 emissions, Scope 3 covers a broad spectrum of indirect emissions that occur in a company’s value chain, including both upstream and downstream activities. This means everything from raw material extraction to product use and disposal, making data management a complex endeavour. 

Few companies have yet to set targets for Scope 3. Many struggle to navigate the complex value chain dynamics and acquire quality data for reporting and reduction plans.

However, with the right strategies and tools, managing Scope 3 data can become a smooth and enlightening process.

Tips for tackling Scope 3 data management

1. Engage suppliers early

Start by identifying key suppliers and understanding their emissions data. Encourage them to measure and report their emissions and consider collaborating on emission reduction initiatives. Tools like supplier questionnaires and sustainability scorecards can be invaluable in this process. Engaging suppliers early not only ensures data accuracy but also fosters a partnership in reducing emissions across the supply chain.

2. Leverage technology and tools

Utilize specialized software to streamline Scope 3 data collection and analysis. Tools that allow you to consolidate your GHG data in line with standards and frameworks can simplify the reporting process and ensure you have audit-ready data all in one place. Automation reduces errors and provides a comprehensive view of your emissions, making it easier to track and analyse data and identify reduction opportunities.

“Keep in mind that this will likely be a multi-year process, so companies should work to improve their data quality over time.”

Amélie Huart, Director at Position Green

3. Standardize data collection

Accurate data collection is the backbone of effective Scope 3 management. Establish a systematic process for collecting data from all relevant activities. Use standardized forms and procedures for activities like business travel and waste management. Consistency ensures that the data is reliable and comparable over time, which is crucial for accurate reporting and setting reduction targets.

4. Set clear and achievable goals

Setting clear, measurable goals is critical for driving progress. Develop short-term and long-term targets for reducing Scope 3 emissions. Make sure these goals are aligned with your overall sustainability strategy and are based on realistic assessments of what can be achieved. Regularly review and adjust these goals as needed to reflect changes in your operations or supply chain.

5. Support and educate your teams

Equip your teams with the knowledge and tools to effectively manage Scope 3 emissions data. Provide training on data collection and analysis, and ensure they understand its importance in achieving sustainability goals. By fostering data literacy and supporting informed decision-making, your teams can turn emissions data into actionable insights that drive your company’s net-zero objectives.

6. Collaborate and share best practices

Join industry groups, participate in sustainability networks, and share your experiences with other companies. Collaboration with other companies can lead to innovative solutions and shared strategies for reducing Scope 3 emissions. Sharing best practices not only enhances your approach but also contributes to broader industry-wide improvements.

Carbon accounting done right

Position Green’s carbon accounting software is designed by Europe’s leading sustainability experts to help you track your targets and understand your global impact, adapting to your company’s ambitions over time. 

Easily measure, report and reduce CO2 emissions across all scopes and build your climate strategies on data you can trust.

Take steps to consolidate and report your GHG data in line with key standards and frameworks straight out of the box – from CSRD and GHG Protocol to CDP and SBTi.

Book a free demo with one of our experts to get you started.